Территория ИЦ «Буревестник» у моста Александра Невского в Петербурге продана с превышением цены на 20%

On 27th of November the Auction House of the Russian Federation (AHRF) held a classic auction (in auction hall with an auctioneer) on behalf of the Burevestnik IC JSC (a member of ALROSA Group).
For sale was offered a former production site the Burevestnik IC near Novocherkasskaya subway station, in close proximity to Saint Petersburg Plaza BC, elite Novy Gorod (New City) RC.
Address: 68, Malookhtinskiy Ave.
The territory area – 3.9 ha, a total area of buildings – 38.6 thousand sq. m.
According to the Land Use and Development Regulations the main way of the territory use is placement of apartment houses.

Four bidders were registered at the auction.
The price of the sale – 1.573 billion rubles (the starting price – 1.3 billion rubles).
During the auction the participants made 22 bidding steps (biddings step=13 million rubles) for increasing, so the price went up by 20% (by 273 million rubles).
The Galaktika Ltd, behind which there is a pool of large investors, became the Winner of the auction. According to a representative of the Company this is their debut project on the territory of Saint Petersburg.
The LSR GC was actively bargaining with the Winner.

“In accordance with the Evaluation Report, the market price of the plot was determined as 1.150 billion rubles. Relevance of this price was confirmed by numerous experts, who designated a range as from 1 to 1.2 billion rubles. So, from the point of view of the market, the starting price of the plot was set too high and took into consideration a desire of the Owner to level his own risks. And we think that exactly a format of the biddings, in the hall with an auctioneer, and a possibility of competitors to see each other provided both the sale itself and such a significant growth of the price.
This fact refutes a common opinion that auctions for the sale of large objects are not relevant now and all deals are made only through purpose-oriented way. A today’s result could hardly be reached in case of a direct sale of the plot.
Liquid, clear for the market assets will be in demand both now and always and a classic auction is the most effective way to sell them.
Today the main owner of such territories is still Saint Petersburg. Offering for sale the city lands could become a source of both the city budget replenishment and guarantee of development of construction business as one of the main driver of regional economy”,tells Dinara Useinova, Deputy General Director of the AHRF.